The Rwanda Agro-Dealer Development (RADD) project is building, strengthening and professionalizing networks of agricultural input importers and agro-dealers. In turn, these organized and well-trained agro-dealers are providing increased, timely and more cost-effective supplies of agro-inputs to Rwanda’s farmers. Funded by the Alliance for a Green Revolution in Africa (AGRA) and implemented by IFDC, RADD is helping to enhance agricultural productivity and is increasing incomes for both farmers and agro-dealers.
The three-year project (2010-2012) is strengthening the private sector’s role in agro-input supply, a key component of the Rwandan government’s Agricultural Development Strategy and its Crop Intensification Program (CIP). RADD is complementing the government’s efforts to increase the supply of improved foundation seed, increase fertilizer importation and use and increase the number of private sector sales points. To accomplish these goals, RADD is working in close collaboration with IFDC’s CATALIST project, the Privatization of Rwanda’s Fertilizer Import and Distribution System (PReFER) project and the COMESA Regional Agricultural Inputs Program (COMRAP).
The CATALIST project introduced Rwanda to approaches that are appropriate in situations with limited agro-input demand and where formal credit systems are generally out of reach for smallholder farmers. RADD is augmenting that groundwork through the creation of effective linkages among the different actors of the input supply chain.
Human capital development is a major RADD activity, enabling agro-dealers to provide farmers with quality inputs and education on their appropriate use. RADD, PReFER and COMRAP are in the process of training approximately 850 agro-dealers and 250 agents to participate in the project.
The project is creating a computer database of Rwanda’s agro-dealers. Using the database, the project staff is also creating a GIS map of these agro-dealers. This will assist RADD to provide targeted trainings to the right beneficiaries.
RADD is also helping agro-dealers in terms of financing and credit. The project is linking agro-dealers with lending institutions through the use of a credit guarantee fund. Dealers will be able to offer credit to farmers for inputs they need at the lowest possible cost.
In addition, RADD is working with the Rwandan Ministry of Agriculture and Animal Husbandry (MINAGRI) to implement a Weather Index Insurance Program, which will serve as a risk cover for agro-input loans granted to farmers. Farmers who borrow to buy inputs can also buy insurance to protect against drought. This reduces farmer risk, as well as risks faced by dealers who sell on credit.
In collaboration with MINAGRI’s Rwandan Agriculture Development Agency and district extension services, RADD is establishing approximately 400 new demonstration plots. The project uses these plots to show farmers the positive impacts of accessing and correctly using improved agro-inputs. Observing these improved practices will increase farmers’ input demand, which will in turn lead to increased productivity and income at the farm level.
Upon completion of the project, an agro-input dealer association will be established in Rwanda, with a membership of at least 250 agro-dealers and stockists. Also, an incremental 20,000 metric tons (mt) of fertilizers and 7,500 mt of improved seeds will be sold, and a better-functioning and sustainable input supply system will have been established in Rwanda. Ultimately, RADD will enable 200,000 Rwandan farmers to access inputs and technology adoption advice, with 60,000 farmers benefiting from farmer field days and more than 100,000 farmers benefiting from technology transfer advice.
RADD Progress (January-June 2011)
- A database of 885 agro-dealers was created and a map of agro-dealers shops in Rwanda is now available.
- The ongoing training of 865 agro-dealers and 254 agro-dealer agents is being conducted throughout the country on the technical aspects of inputs, business management and output marketing, in close collaboration with COMRAP. All trained agro-dealers receive a temporary license from MINAGRI, allowing them to sell agro-inputs in Rwanda. RADD is organizing an accreditation system for agro-dealers in collaboration with MINAGRI.
- Thirty agro-dealer cooperatives were created at the district level in order to build a National Agro-Dealers Federation.
- In collaboration with AMITSA and E-Soko Ghana, 15 agro-dealers were trained on the agro-inputs market information system using mobile phones and the Internet.
- Five financial institutions were invited to view presentations during agro-dealer trainings to build interest in making financial products and opportunities more available to agro-dealers in order to develop improved access to finance.
- A refresher course for 16 trainers was conducted on business management skills.
- The project participated in input market development, closely following the fertilizer auction organized by MINAGRI and the implementation of the voucher program.
- Ten mini-exhibitions were organized in collaboration with seven agro-input importers to develop business linkages between importers, wholesalers and retailers. Roughly 865 agro-dealers who attended the training had the opportunity to meet the exhibitors.
- A study tour to Kenya was organized, with six agro-dealers from four provinces and Kigali city sharing experiences with AGMARK- and EADN-trained agro-dealers. The trip included tours of agro-dealer demonstration plots, visits to input companies such as MEA Ltd. and Kenya Seed Company Ltd. and the sharing of experiences with the Kenya National Agro-Dealers Association (KENADA).
- An MoU between IFDC and the Rwanda Private Sector Federation (PSF) was signed. A meeting was organized with 16 Business Development Services (BDS) consultants in order to assist agro-dealers in accessing credit through training. The focus of the meeting was on business plans and their development and financial institutions’ procedure compliance.
- ISFM trainings of 25 extension service technicians were conducted, allowing them to assist agro-dealers in the establishment of demonstration plots in the June 2012A season.
- Fifty demonstration plots were established by agro-dealers in six districts (Huye, Karongi, Nyaruguru, Nyamagabe, Rubavu and Rutsiro).
- A meeting with women agro-dealers was organized in order to build an association of Rwandan women in agri-business (inspired by the success of the Women in Agri-business in Sub-Saharan Africa Alliance [WASAA]).
- RADD staff members worked in close collaboration with public and private organizations and other projects implemented by IFDC, including CATALIST, PReFER, SEW, EADN, COMRAP and AMITSA.
Past Highlights (June-December 2010)
- The RADD project began its activities in June 2010. The project is active in all 30 Districts of Rwanda. The following activities have been implemented:
- Completed a short survey on the potential collaboration between agro-dealers and banks focusing on a voucher program that may be run through the lending institutions utilizing credit access.
- Trained 15 agro-dealers on the collection and dissemination of market information (prices and availability) in collaboration with AMITSA, the regional Input Market Information System.
- A meeting was held with AGRA, Banque Populaire du Rwanda (BPR) and Banque Commerciale du Rwanda (BCR) to discuss an AGRA guarantee fund to support these banks in agro-dealer business finance.
- Two meetings were organized with BPR, discussing how the bank might finance agro-dealers trained by the RADD project from August-October 2010.
- Participated in input market development in Rwanda, closely following the fertilizer auction organized by MINAGRI and voucher program implementation to date.
- Trained 70 agro-dealers on the Weather Index Insurance Program from September-November 2010, identifying ways the product can serve as a credit guarantee between agro-dealers, banks or micro-finance institutions (MFIs) and insurance companies.
- A total of 16 trainers from local organizations were trained from October-November 2010 as part of the RADD Training of Trainers (ToT) program to prepare these trainers to conduct agro-dealer trainings across Rwanda.
- The RADD project has contracted with 16 local organizations to collaborate in providing trainers and establishing demonstration plots for agro-dealers.
- A meeting was held with Plant Health Clinics (CABI) on collaborating to involve agro-dealers in a plant health program.
- Established 14 demonstration plots in the districts of Nyamagabe and Nyagatare as a pilot for the 2011A season. The focus was to inform participants about the benefits of using agricultural inputs to increase production.
- Contracted the National University of Rwanda (NUR) through its Center of Geographic Information System (CGIS) to partner in an agro-dealer baseline survey. NUR/CGIS will provide a map of, and detailed data for, agro-dealers in Rwanda. GPS coordinates and a questionnaire were used for data collection, and software (Arc View) was employed for data analysis.
- RADD is conducting ongoing trainings for about 800 agro-dealers and 250 agents in collaboration with COMRAP (both projects are implemented by IFDC).
- The RADD project is facilitating the creation of the Rwanda National Agro-Dealers Association, beginning at the District level. To date, 30 districts have voted, electing committees of four people, who will help organize a general assembly at the national level.
- RADD worked in close collaboration with public and private organizations and other projects implemented by IFDC, including CATALIST, PReFER, SEW, EADN, COMRAP and AMITSA.
RADD Information
Articles
Agro-Dealer Program Increases Fertilizer Supply and Use in Rwanda
An IFDC Core Competency: Agro-Dealer Development (Taken from IFDC Report Volume 35, No.3)